Savannah morning news. [volume] (Savannah) 1868-1887, 1887-01-30

= a1ssss many Of the capital
''-' .. ..stsqe.as prizes. The chances
Lottery Bujlding. of winning in the
schemes OF this company are thoroughly
understood by it's patrons. 1t would be
waste Of time and of space to analyze the
schemes; the only questions that interest
the lottery ticket-holder are. is the
! scheme honestly drawn? and, ls the
company financially responsible? 10
satisfy itself on these points a member OF
the Chronicle staff was sent from San
! Francisco to this city TO investigate the
! affairs Of The Louisiana State Lottery
! Company, and to witness the eXtraordt-
nary drawing which took place yesterday.
LEGALITY OF THE LOTTERY.
The first duty of the Chronicle reporter
was to ascertain the legal status OF the
concern. "Does 1t have legal exist
encer was the question he put TO lead
Ing member of the Louisiana bar, and a
gentleman who VIII soon occupy a high
judicial position in the State.
"Of course it has," he replied very
promptly. ''Its franchise is now unques-
toned in law. In 1868 the Legislature of
Louisiana enacted a law entitled AN act
to increase the revenues of the State and
to authorize the incorporation of The
Louisiana State Lottery Company, and
to repeal certain acts now in force"
This Act provided that no foreign lottery
tickets should be sold within the State,
and gave to certain citizens named au-
thOrity TO organize corporation to pro-
toct the State against the great losses
heretofore incurred in sending large
NJ n
tries for the purchase OF lottery
tickets, to establish a solvent ana reliable
home Institution and to insure perfect
fairness and justice in the distribution of
prizes.' The capital stock was liked at
81 900 900, IN shares of 800 each. There
were provisions for board OF directors
and all the corporate rights to sue and to
be sued, etc. The duration of the lottery
was to be for twenty-five years. 1t was
to pay $4,000 year TO the educational
lund, and was required to give bonds to
carry out these provisions. The consti-
tuition OF Louisiana, adopted in 1879,
touches the lottery question as follows:
ARTICLE l67. The General Assembly hal
have authority to grant lottery charters or
privilege; provided, each charter or privi-
lege shall pay not less than $4,000 per annum
in money into the treasury of the State: and
provided further, that all charters shall cease
and expire on the LIST of January. 1895, from
which time all lotteries are prohibited In the
state.
The $40, 600 per annum now provided by law
to be paid by the Louisiana State Lottery
Company, according to the provisions of its
charter granted in Tie year 1883, shall belong
to the Charity Hospital of New Orleans, and
the charter OF sand company IS recognized as
q contract binding on the State for the period
therein specified. eNceptit monopoly clause,
which is hereby abrOgated, and all laws con-
traTv to the provisions of this article are here
| 10y declared null and void; provided, said
hall ttaFn rnpI,- Df
all It's monopoly features in the Office of the
secretary OF State within sixty days after the
ratification of this constitution.
These conditions were promptly &C
ceDted by The Louisiana Lottery Com
pany; indeed, this constitutional provi-
! sion guaranteed the company exactly
| what it was contending it pOssessed-a
| contract with the State OF Louisiana.
| This position has been further strength
! encd by decision of the United States
| supreme Court rendered within few
days. An effort was made to tax the lot
! terry company under an act taxing stock
| holders in corporations for State and city
| purposes. This tax the company re-
| sisted, on behalf of It's shareholders, on
! the plea that the company had a valid
| and bona tde contract with the State,
/ aud that it committed the whole tax by
| the payment OF $4,000 wear to the
! Charity Hospital. This plea was
supported by the United States
1 supreme Court, which holds
that the lottery company does
! have a legal and binding contract with
the state of Louisiana, and that any at
tempt TO eXtort from 1t a sum in excess of
| The $4,000 Is Illegal. This decision, how
/ ever, carries with il a benefit to the Lou
| islana Lottery something more important
/ - ne managers than the mere saving OF
dollars aud cents-recognltiOr By the
| laws of Louisiana and Of the nation as a
/ corporation engaged IN a legitimate bust
ness under legal and valid charter.
! This recognition of the validity OF con-
tract gives The Louisiana State Lottery
what no lottery has ever had in America
! since the days OF washington and Jetfer-
/ son, when the Presidents were authorized
to draw lotteries for the benefit OF the ma
/ tional captal-a legal existence for the
| period Of It's charter.
RECOGNIZED INSTITUTION.
The legal status of The Louisiana State
| Lottery is thus clearly and indisputably
established. One cannot long remain in
New Orleans without discovering that it
Is one OF the recognized institutions of
the city, and one that possesses the full
est confidence of the people. Whatever
the rest of the world may think Of lot
terles, New Orleans believes in them
Interviews with the Presidents of the
leading Banks, merchants and planters
not only proved this, but the further fact
that these men have faith in the honesty
of the management OF the drawing and
the perfect soivencv OF the institution.
Indeed, It is generally asserted that the
Louisiana lottery is stronger than any
bank IN the South, and all the banks cash
its prizes at sight Its stock, which Is
regularly quoted on Change, sells at $3.50
Its par value IN 800. The management
comprises the foremost citizens OF Lou.
isiana, financially and socially consid-
ered-men who are open-handed, broad
and liberal.
G. Kohn, President OF the Union Ma
tional Bank, said: II am not Interested
in lotteries IN any way, and am opposed
to gambling in any form or guse 1t may
take. | do not think gambling should be
encouraged. but if ever an institution de-
served the friendship OF a people. The
Louisiana State Lottery deserves the
friendship Of toe people OF this section.
1t has done, and is constantly doing, "A
great work Tor humanity No one can
imagine the far.reaching charity OF that
institution. Its vaults are always open
TO the poor and the needy. rich cor
poration, perfectly responsible, aud con-
Quoted with the strictest integrity"
J. h. OIlesby, President Of the Louis
lana National Bank, n conservative, care